FE Circular No. 07: Interest rate on borrowing from Export Development Fund (EDF)

For loans from the Export Development Fund (EDF) extended beyond 180 days, the interest rate prevailing at the time of extension applies to the extended period. This directive amends previous instructions by specifying the applicable interest rate for tenures exceeding the initial 180-day window. The rule is effective immediately and applies to Authorized Dealers in Foreign Exchange in Bangladesh.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka. www.bb.org.bd
FE Circular No. 07 Date: April 13, 2023
All Authorized Dealers in
Foreign Exchange in Bangladesh
Dear Sirs,
Interest rate on borrowing from Export Development Fund (EDF) Please refer to Paragraph 3 of FE Circular No. 45, dated December 31, 2017 in terms of which EDF loans from Bangladesh Bank are repayable by Authorized Dealers (ADs) within 180 days from dates of disbursement, extendable by Bangladesh Bank up to 270 days. Applicable interest rate on borrowings from EDF is mentioned in paragraph 02 of the said circular and its subsequent amendments.
02. It has been decided that in case of extension of tenure beyond 180 days, the interest
rate prevailing at the time of such extension will be applicable for the extended period. Other relevant instructions on EDF shall remain unchanged. Please bring the above instructions, effective immediately, to the notice of your relevant customers. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123

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Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works